Pakistan’s exports hit a record high in January 2026, crossing $3 billion for the first time, as import levels decreased, narrowing the monthly trade deficit by nearly 29 percent.

However, cumulative figures for the first seven months of the fiscal year reveal a widening annual trade deficit, highlighting ongoing challenges for the economy.

January 2026 exports and imports

According to the Pakistan Bureau of Statistics, export volumes increased by 35 percent in January 2026, reaching $3.1 billion. This represents a 3.73 percent increase compared to January 2025.

Imports for the month fell by 5 percent to $5.8 billion, helping reduce the monthly trade deficit to $2.7 billion, a 29 percent improvement from previous months.

Khurram Shahzad, Advisor to the Finance Minister, said, “Increasing monthly exports and decreasing imports are positive signs of improvement in the economy. Lower energy costs and reduced interest rates are likely to further boost exports in the coming months.”

Fiscal year 2025-26

While January showed promising trends, the cumulative trade data for July 2025 to January 2026 tells a different story. Pakistan’s trade deficit increased by 28 percent over the same period last year, rising from $17 billion to more than $22 billion.

Exports in these seven months decreased by 7 percent to $18.19 billion, while imports grew by 9.42 percent, surpassing $40 billion compared to $36.77 billion in the previous fiscal year.

Experts say the monthly export growth is encouraging, but persistent high imports and supply-side challenges continue to pressure the trade balance.